Pre-qualification helps you determine how much you can afford. It's essentially an initial assessment by a lender to estimate the mortgage amount you may be eligible for based on information, such as your income, credit score, and debt. Pre-qualification is not a loan approval.  It's simply a step to help you understand how much house you can afford, allowing you to focus your home search on properties within your price range.

In a competitive real estate market, being pre-approved can give you an edge when making an offer on a property. It shows sellers that you are a serious and qualified buyer, increasing your chances of having your offer accepted over others who haven't been pre-qualified.

Pre-qualification can help you set realistic expectations for your home search. It ensures that you are looking at homes that are affordable and will save you time and effort that might be wasted on properties that are beyond your budget.

Pre-approval can expedite the mortgage approval process when you find a home you want to buy. Because the lender has already reviewed some of your financial information, the actual mortgage application process may move more swiftly, potentially leading to a faster closing.

Falling in love with a house only to discover later that you can't afford it can be emotionally and financially disappointing. Pre-qualification helps you avoid this situation by establishing your financial boundaries from the start.

If there are any issues with your credit report or financial history that may affect your mortgage eligibility, pre-approval can help you identify and address these issues early. This can be crucial in improving your chances of getting approved for a mortgage and securing a favorable interest rate.